GOODWILL AND RADIO BROADCASTING LICENSES

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND RADIO BROADCASTING LICENSES

Goodwill

As of June 30, 2024, the Company performed a qualitative impairment assessment for goodwill at four reporting units because of a decline in operating cash flows. Based on the impairment assessment performed, no goodwill impairment losses were recognized for the period ended June 30, 2024.

Radio Broadcasting Licenses

As of June 30, 2024, an increase in the discount rate, and a decline in the projected gross market revenues and operating profits triggered a qualitative impairment assessment for broadcasting licenses across all radio markets. The Company performed a quantitative impairment assessment for the broadcasting licenses for all radio markets to determine whether they were impaired.

To determine the fair value of the broadcasting licenses, the Company utilized the income approach which values a license by calculating the value of a hypothetical startup company that initially has no assets except the asset to be valued (the broadcasting license). The Company performed a discounted cash flow analysis for broadcasting licenses across all 13 radio markets. The key assumptions used in the discounted cash flow analysis for broadcasting licenses include market revenue and projected revenue growth by market, mature market share, operating profit margin, terminal growth rate, and discount rate.

Based on this analysis, the Company recognized an impairment loss of approximately $80.8 million associated with 9 radio markets within the radio broadcasting segment, included in impairment of goodwill, intangible assets, and long-lived assets, on the condensed consolidated statement of operations during the three and six months ended June 30, 2024.

The following table presents the changes in the Company’s radio broadcasting licenses carrying value during the six months ended June 30, 2024.



	(In thousands)
Balance as of January 1, 2024	$	375,296
Impairment charges	(80,758)
Balance as of June 30, 2024	$	294,538

Below are the key assumptions used in the income approach model for estimating the fair value of the broadcasting licenses for the 13 radio markets in the most recent interim impairment assessment performed as of June 30, 2024.


Radio Broadcasting Licenses			June 30, 2024
Discount Rate			10.0%
Revenue Growth Rate Range			(3.2)% - 0.2%
Terminal Growth Rate			(0.5)%
Mature Market Share Range			1.0% - 28.5%
Operating Profit Margin Range			2.5% - 30.0%